Polkadot Price Prediction: DOT stabilizes for a 20% rally
|- Polkadot price has tagged the $24.84 support floor twice, suggesting that the bulls are building up momentum.
- Investors can expect DOT to see a quick 20% run-up to $30.89 from its current position.
- If the altcoin sets up a swing low below $24.35, the bullish thesis will face invalidation.
Polkadot price has been consolidating since the December 4 crash and shows signs that it is ready to make a move. Due to its presence near a crucial support level, DOT is likely to bounce off this barrier and trigger an upswing.
Polkadot price gets ready to move higher
Polkadot price set up a swing low at $24.35 due to the December 4 crash. Since this point, DOT has erected variable swing highs, but the swing lows have been in the proximity of $24.84. Over the last eight days, DOT has tagged this barrier roughly twice, suggesting a double bottom formation and an indication to move higher.
Therefore, investors can expect Polkadot price to move higher. However, in a special case, there is a chance DOT might retest the $24.84 support level for the third time. This move would lead to a triple bottom setup, indicating an upswing is even more likely.
The $29.54 hurdle is the first barrier Polkadot price will encounter on its way up and is roughly 14% away from its current position - $26.01. Beyond this, DOT will revisit the $30.92 resistance level, indicating a 20% upswing.
In a highly bullish case where the buying pressure increases, Polkadot’s price could extend to $35.04, representing a 34% ascent.
DOT/USDT 4-hour chart
While things are looking up for Polkadot price around the $24.84 support level, a breakdown will alarm the traders. However, if DOT produces a swing low below $24.35, it will create a lower low, invalidating the bullish thesis. In this scenario, Polkadot price might revisit the immediate support level at $22.66.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.